COMMERCIAL PAPER [available directly to individual investors, no FDIC-insurance applies]
Commercial paper is a money market security issued typically by corporations or banks as a short-term debt instrument. Purchasers of commercial paper are not purchasing a registered security or a FDIC-insured product, but rather a private debt obligation backed by the financial strength and reliability of the issuer. In the last few years several issuers have made their commercial paper and notes available for purchase by individual investors directly online.
ISSUER |
YIELD* |
NOTES |
| GE Interest Plus | 3.35% yield | AAA rating from Standard and Poor's Corporation and Aaa ratings from Moody's Investor Services. 50K minimum to receive 3.35% yield, the yield drops to 3.20% for balances between $15,000 and $49,999 and to 3.04% for balances below $15,000. |
| Ford Interest Advantage | 3.76% yield | 50K minimum to receive the 3.76% yield. The yield drops to 3.61% for investments between $15,000 and $49,999 and to 3.45% for investments below $15,000. The debt of Ford Credit was downgraded in 2007 by the ratings services and the outlook from all the three major ratings services is currently negative. |
Posted 4/11/08
